The impact of various financial crises and the tightening of credit markets has reduced the borrowing options available to governments. In addition, the cost of the credit that is available has gone up substantially, leading to a heightened need for governments to conduct a critical evaluation of different borrowing options and to negotiate the most favourable terms.

This course will build the analytical skills of participants and provide them with the necessary tools to evaluate different financing options, as well as empowering them to select and negotiate the most appropriate terms. It will guide delegates to acquire a complete understanding of financial markets and different creditors, and the need to achieve the appropriate balance between borrowing cost and associated risk.

Course Objectives

On completion, you will be able to:

• Understand the relevance of debt management in the wider macroeconomic and public financial management context, including coordination with fiscal and monetary policy
• Understand the building blocks of loan evaluation, including the loan cycle and the relevance of legislation
• Interpret loan and bond agreements, including evaluation of the financial terms of different loan and bond options and, along with an analysis of the legal terms, make recommendations on the most suitable option from a cost and risk perspective
• Understand the practical processes involved in loan negotiations
• Evaluate different sources of finance and determine their appropriateness for funding various types of project
• Apply financial evaluation techniques to appraise various sources of finance and assess the financial impact of debt restructuring
• Understand the process of reviewing the debt portfolio and assessing the impact on the portfolio of contracting new borrowing
• Appreciate the process of issuing government securities

Key Topics

• The borrowing cycle
• What and when to negotiate
• Legal and institutional frameworks for government borrowing
• Available financing options
• Structure of loan agreements
• Interpretation of loan agreements
• Techniques for financial evaluation
• Assessing the impact of new borrowing
• The impact of portfolio indicators
• Principles and processes of negotiation
• Negotiation skills, techniques and strategies
• Practical simulation of a loan negotiation

All courses will be conducted entirely in English. A proficient level of both spoken and written English is required by all delegates so that they are able to fully benefit from the course and participate in our interactive style of training.